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Bank of America Settles With Regulator on Mortgage Losses

By

Alan Zibel And

Matthias Rieker

April 2, 2013 2:08 p.m. ET

WASHINGTON—Bank of America Corp. has reached a $165 million agreement with a federal credit-union regulator, settling allegations that the bank played down the risks of poor-quality mortgages packaged into securities.

The settlement, announcement Tuesday by the National Credit Union Administration, makes Bank of America the fourth financial firm to reach a settlement with the credit-union regulator over ill-fated investments held by wholesale, or corporate, credit unions. Five of those institutions, which provide...